Anglo-American is to switch its South African thermal coal belongings into a brand new firm, in a transfer to exit the polluting useful resource amid rising investor strain.
The demerged firm, Thungela, will checklist on the Johannesburg and London inventory exchanges, Anglo-American stated on Thursday. Thungela produced 16.5m tonnes of coal final 12 months and has belongings value $1.3bn.
“Because the world transitions in direction of a low-carbon economic system, we should proceed to behave responsibly,” stated Mark Cutifani, Anglo-American’s chief government. “Our proposed demerger of what are valuable pure assets for South Africa permits us to do precisely that.”
Mining firms have been below strain to divest from coal mines. Rio Tinto offered its final coal mine in 2018 and BHP can also be seeking to exit its thermal coal enterprise.
Anglo-American traders will every obtain one share in Thungela for each 10 Anglo-American shares they maintain, the corporate stated.